Perpetual - The first half year reflection!
In December last year, the financial services industry looked on with interest when it was announced that the Fordham Group was to join Perpetual Ltd as at January 5 2010. Now, six months later, the Perpetual teams have joined Fordham in the Rialto and all the corporate livery for both organisations is now on display. It’s a new paradigm in our industry!
Remind me why?
Many financial analysts have noted that the accounting profession is dividing into two separate streams. On one hand are the multi-national audit focussed oriented firms, on the other hand, are the independent, full service, private client advisor firms with a more holistic approach to client affairs.
With our orientation to business advice, wealth accumulation, taxation and asset protection, planning and investment management for businesses, their owners and families, Fordham leads this sector.
In order to build on this market position, maintain competitive advantage and eventually offer services nationally, it had become obvious that Fordham needed to undertake a strategic expansion.
Perpetual offered access to a strong, a national distribution network and an environment where both firm’s services compliment each other.
What did your staff say?
This is a big precedential change. Our peoples’ issues were firstly all about employment conditions. Item for item, the equivalent Perpetual offerings were either identical or better. Important, but only part of the story.
As predominantly Gen X and Gen Y people, we found that their concerns varied around issues such as:
- Unique and interesting work
- Need for a recognisable brand
- Commitment to further education
- Opportunity for secondment
- Career paths
- Long term financial rewards
- Equity participation
- Philanthropy and environment
- Culture and values
- Relationships with clients
- Being part of something special
It is probably fair to say that our people are getting used to the Fordham directors instigating a lot of change! But also fair to say that they have learned to look back at the wisdom of those destiny changing decisions. Decisions such as getting out of incompatible services (audit and insolvency), declining to act for incompatible clients (multi-nationals, public companies and not-for-profits) and departing from a well known accounting network and creating our own brand. A brand which stood for focus on one type of client … the business owner.
Naturally, there were doubts that the special “Fordham magic” might change. The value of our business is our proposition. Something we want to build, not destroy.
So, after our first half, we are all settling into our new world … and with smiles on our faces. It’s business as usual.
What about your clients?
Far more predicable perhaps. For our clients, it’s all about trusted and enduring relationships. Our clients wanted to know that the service will not change and that our people will still be here going forward.
Our clients now see that with the backing, resources and infrastructure of a public company … we can not only enhance our service offering, but improve the employment proposition for our people also, but maintain the essence of Fordham going forward.
Again, it’s business as usual
The firm has changed its name four times in the last few decades. It is likely that the Fordham name will be replaced in time by Perpetual branding, but with a Private Business Advisory focus.
What did your referrers say?
Nearly all said “congratulations”. Our referrers know us well, and they know that we create successful outcomes for our clients … it was logical to them that this would be a successful outcome for us as well … this makes it very easy.
Of course, Perpetual have very strong referral channels too, and many are also Fordham referrers.
So are you happy with the outcome?
Delighted is perhaps an apt description.
And it’s great to be at the forefront of such a big change in our profession. I think our people will always remember, we were the first, the first to be picked, and picked by the best of breed.
This is history making!